Daily March E-mini Russell 2000 Index

E-mini Russell 2000 Index (TF) Futures Analysis – January 31, 2013

Pressure from the large cap indices is fueling overnight weakness in the March E-mini Russell 2000 Index. This action started on Wednesday when the Russell failed to make a new move high, breaking the correlation with the S&P 500 and NASDAQ-100. This divergence sets up potentially bearish trading conditions.

Daily March E-mini Russell 2000 Index
Daily March E-mini Russell 2000 Index

Technically, the March E-mini Russell 2000 Index broke through a long-term uptrending Gann angle at 907.10 today. This is the first sign of weakness since late December. One of the next downside targets is a pair of uptrending Gann angles at 865.10 and 864.10.

Based on the short-term range of 823.10 to 907.40, the retracement zone at 865.25 to 855.30 is also a key target. On the upside, 899.40 is resistance today. If the market is indeed turning lower then this price should stop the rally. A trade through 907.40 will negate this potentially bearish chart pattern. 

Published by

James Hyerczyk

James A. Hyerczyk has worked as a fundamental and technical financial market analyst since 1982. His technical work features the pattern, price and time analysis techniques of W.D. Gann.

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